Practical Tips on How to Be Rich

Everybody wants to be rich. This is more obvious in a Third World Country like the Philippines. Who else doesn’t want to enjoy a comfortable living anyway?

As you can see, a lot of people line up for every talent search or contest promising the winner to be an instant millionaire. They don’t mind the heat of the sun, the long periods of waiting time and the possible humiliation they can get from other people. They just want to show their unique skills and talents in order to win the hearts of the judges and the voting public to claim the most coveted victory of becoming an instant millionaire.

We have been probably bombarded by a lot of financial advises. From simple ways on how to control spending in order to budget our money, money saving tips that we can implement, and investment options and decisions that we should consider to grow our money, each presents little steps on how to be rich and financially free.

Today, I learned another set of lessons from the world’s greatest investor, Warren Buffett. These are very straighforward tips which you can practically apply to your day-to-day living. You don’t have to become a famous singer or actor to become rich. All it takes is your will and determination to become one. For your convenience, I made an acronym “HIBASE” which stands for Hardwork, Investment, Borrowing, Audit, Savings, and Earnings.

PRACTICAL TIPS ON HOW TO BE RICH:

Hardwork. Nothing on earth can be achieved without hardwork. As the famous commercial of Milo says: “Great things start from small beginnings.” Each of us has to do our own work in order to achieve our goals. No questions about that. All the hardwork bring a profit, but a mere talk leads only to poverty. So work hard, shut your mouth and do your thing. As Robert Kiyosaki says: “Mind your own business!”

Investment. You maybe tired of hearing this: “Don’t put all your eggs to one basket!”. Diversify, diversify, diversify. There are a lot of options where to invest your extra cash. Take note that no one has become successful without encountering risks.

Borrowing. As much as possible, do not borrow if you cannot commit yourself to turn the debt into a ‘good debt’. There’s a huge difference between good debt vs. bad debt. Each time you borrow, you become a slave of the lender. You will act as a servant to your master which is the lender. You will be inclined to work harder just to pay your debts for the rest of your life.

Auditing. You don’t need to become an accountant to audit your own money. Just separate the wants from the needs. Beware of little expenses, a small leak can sink a large ship. You must watch out for those leaks and stop them as early as possible.

Savings. Don’t save what is left after spending. Instead, spend what is left after saving. This is the proper way of saving money wisely. Save first before you spend. Pay yourself first. Use the equation, INCOME – SAVINGS = EXPENSES

Earnings. Never depend on a single source of income. This is why a job is one of the most unsecured source of income. In fact, in an article written by Steve Pavlina, he enumerated 10 reasons why you should never get a job. Build and invest into assets so that they can provide you passive income even while you are sleeping.

There are many ways on how to do it nowadays especially with the rise of internet technology. Internet business is definitely one of the most profitable among businesses which many people haven’t discovered yet because they are too busy with their jobs.

19 Responses to “Practical Tips on How to Be Rich”

Hi Tyrone, that was again a very nice article on achieving wealth. This will surely guide readers to their financial freedom. I notice that you are only posting few articles in a month. What keeps you busy?

Just 5 yrs ago, I used to be a school doctor, no debt but 0 assets. But when I discovered the very simple science of getting rich book of W.Wattles, I invested on my financial education and was able to put up 9 diversified income generating assets ( using 3 investment vehicles-
Business by putting up 5 corporations, 3 Real Estate assets (condo, townhouse and subd.) and lastly Paper assets (Stocks IPO of GTcap, EW, CAL, Pgold etc).

It is the THOUGHTS we think, the IMAGES we visualize and the ACTION we take.

“The riches you will receive will be in exact proportion to the definiteness of your vision, the fixity of your purpose to advance, the steadiness of your faith in GOD and the depth of your gratitude”